(Last Word) the U

question 24

Multiple Choice

(Last Word) The U.S. sugar price support program has

• A) cost U.S. consumers much more than it has benefited U.S. sugar producers.
• B) cost U.S. consumers much less than it has benefited U.S. sugar producers.
• C) reduced the price of sugar to U.S. consumers.
• D) increased sugar imports as a percentage of U.S. sugar consumption.

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Definitions:

Specialization

A process wherein individuals or businesses focus on producing a limited range of goods or services to gain greater efficiency and productivity.

Trade

The swapping of goods, services, or both among two or more entities.

Opportunity Cost

The loss incurred from potential opportunities when one choice is made over others.

Absolute Advantage

A condition where a country, entity, or individual can produce a good or service more efficiently than competitors using the same amount of resources.